redeem

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Redemption

1. In bonds, the act of an issuer repurchasing a bond at or before maturity. Redemption is made at the face value of the bond unless it occurs before maturity, in which case the bond is bought back at a premium to compensate for lost interest. The issuer has the right to redeem the bond at any time, although the earlier the redemption take place, the higher the premium usually is. This provides an incentive for companies to do this as rarely as possible.

2. The act of the issuing company repurchasing stocks or mutual funds. In the case of mutual funds, the repurchase is made at net asset value per share. Stocks may be redeemed in cash or by proration. See also: Proratable factor.

redeem

(1) In mortgages, to cure a default by paying all past-due sums and penalties after receiving notice of default, but before acceleration. (2) To exercise the post-foreclosure right of redemption, if allowed. (3) Under federal law, the IRS has 120 days after foreclosure to purchase property on which it had a lien—to redeem the property. (It rarely does this,and would only do so if it believed it could sell the property at a profit large enough to justify the time and trouble.)

References in periodicals archive ?
If the acquisition is a triangular asset reorganization (forward triangular merger, reverse triangular merger or triangular C), the redeeming corporation is the controlling corporation.
Should the percentage stock ownership in the redeeming corporation from before or after the hypothetical redemption be used?
Also attributed to the redeeming trusts were shares in the corporation owned by a trusts of which Mr.
Major partners such as BP Amoco, Franklin Covey, Marriott or Staples provide value to Visa Business cardholders when redeeming Visa Extras points.
Christian Freedom International made that choice, stopped redeeming slaves, and is working through both official and unofficial channels to rescue slaves without paying ransom and to call on the government in Khartoum to abolish slavery publicly and call for the immediate emancipation of all slaves in Sudan.
5 billion this season, Internet merchants should recognize the additional revenue potential created by issuing and redeeming branded gift certificates online," Honnef emphasized.
As a result of regulatory relief that was recently received from Bank Negara Malaysia (the Malaysian Central Bank), the Malaysia Series is now permitted to transfer Malaysian ringgits, representing redemption proceeds, from its account to a redeeming investor's account maintained at a duly licensed Malaysian financial institution.